Where should you save your money? Banks and their interest rates

The Straits Times Money Desk shopped around to find out which bank gives you the best bang for your buck. -- ST FILE PHOTO: SIEW YAW HOONG

By Mok Fei Fei

SINGAPORE - The battle of the interest rates is back. Banks across the island have been dangling higher rates on savings and current accounts to attract new customers.

The catch: Most of the promotions are available only if customers carry out a range of other transactions with the bank as well.

For example, some bonus deposit rates apply only if you use the bank's credit cards, or take out a mortgage with the bank, in addition to storing your savings with it. The aim is to entrench each customer's loyalty to a single bank and reduce the likelihood that he will switch to another bank.

Some of the new promotions even exceed the rates offered by fixed deposits, which have traditionally brandished better interest rates because they require the cash to be locked up for a certain period.